PENANG secured RM17.3 billion worth of investments into the manufacturing sector, accounting for 34 per cent of the national total for the first half of this year.
Chief Minister Chow Kon Yeow told a press conference that the data released by the Malaysian Investment Development Authority (Mida) last week reflected Penang’s consistent ranking among the top three to five contributors nationally over the years.
The figures also indicated why there was a need for reinvestments into the public infrastructure such as the proposed Mutiara Light Rail Transit (LRT), the Silicon Island reclamation and three elevated highways - all of which are designed to ease the notorious congestion besieging the roads
“The ecosystem and supply chain is so big, and with this statistic, I hope we will encourage local companies and other small and medium enterprises (SMEs) to seize the opportunities and leverage on the new investments."
Present were State Secretary Datuk Dr Jafri Abdul Jalil, state Tourism and Creative Economy Committee chairman Wong Hon Wai and Penang Youth, Sports and Health Committee chairman Daniel Gooi Zi Sen, as well as InvestPenang chief executive officer Datuk Seri Loo Lee Lian.
Chow says the approved investments will also strengthen Penang’s Artificial Intelligence (AI) capabilities and help the state seize opportunities in the growing digital economy.
The RM17.3 billion recorded from January to June represented a 38% increase from the corresponding period last year.
Of the total, RM12.8 billion, or 74%, came from foreign direct investment (FDI), making Penang the country’s top contributor for manufacturing FDI and accounting for 39% of Malaysia’s total manufacturing FDI during the same period.
Hong Kong, Singapore, China and the United States were among the top investors, collectively contributing 77% of Penang’s approved manufacturing FDI.
On the domestic front, Penang recorded RM4.5 billion in approved manufacturing domestic direct investment (DDI), a 125% increase year-on-year.
“What we are witnessing now are the efforts of two or three previous years – both new investments and expansion of existing companies."
Investments were largely concentrated on Penang’s Electrical and Electronics (E&E) and Machinery and Equipment (M&E) sectors, which collectively accounted for 88% of the state’s total approved manufacturing investments.
The approved investments involve 177 projects and are expected to create 19,337 new job opportunities.
Chow said Penang remains optimistic about the continued growth of AI, which he believes will generate further investment opportunities for the region, including Malaysia and Penang.
Loo said that the state remains confident of exceeding last year’s RM22.4 billion in approved manufacturing investments.
“We have a few more projects and are optimistic of surpassing last year’s RM22.4 billion,” she said. - September 3, 2026.
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